Head up with Head Start
HEADS UP WITH HEAD START
With the headlines filled with news of first time buyers facing
years of hard saving, it must be a daunting prospect for those
looking to take their first steps onto the property ladder. So, is
there light at the end of the tunnel?
Recent figures released by the Council of Mortgage Lenders state
that first time buyers now require a staggering £26,000 for a
deposit for their first home. This news, coupled with increasing
interest rates, is fuelling the population of the 'Generation
Rent,' which is seeing more first time buyers stay in rented
property as they continue to save for a much needed deposit.
However, there is a glimmer of hope for frustrated first timers
looking to own their first home this side of turning 40.
Clever housebuilders are now offering first time buyers a helping
hand onto the property ladder though schemes which only require a
five per cent deposit. What's more, the practical purchasing tool
gives first time buyers access to more affordable 80 per cent
loan-to-value mortgages and, there is no rent to pay on the
oustanding amount.
One scheme, known as Head Start is available with
five-star rated housebuilder Barratt Homes. The scheme has helped
thousands of first time buyers in the UK to get onto the property
ladder and the developer claims to have helped more new homebuyers
get on the property ladder than ever before.
Gary Ennis, Regional Managing Director for Barratt Southern
comments: "With so many first time buyers struggling to meet the
strict lending criteria now required by lenders, we needed to find
a way to help. Head Start is the perfect solution and acts as a
very affordable route towards homeownership. We basically lend you
up to 15 per cent of the value of the property which effectivley
acts as the deposit. The scheme has been enormously popular and we
are delighted that it has proved to be such a hit with new
homebuyers."
Head Start and similar schemes work by the developer lending you
15 per cent of the total value of the property. Allowing you to
access affordable 80 per cent loan to value interest rates, the
scheme means that often mortage repayments work out to be lower
than increasing private rents. The loaned amount can be paid back
to Barratt over ten years, or when the property is sold - whichever
come sooner.
Mr Ennis continues: "Head Start is really very straight forward
and allows first time buyers to get onto the property ladder and
benefit from more affordable interest rates available with 80 per
cent loan-to-value mortgages. Its a great time to be
purchasing a new home. With property prices more affordable than
they have been for years and the forecast suggests an increase,
first time buyers are likely to profit from their investment."
Whilst there are many helpful schemes out there that help with a
deposit, the main benefit of Headstart is that there is no rent to
pay in addition to regular mortgage payments. The property
therefore entirely belongs to the homeowner and the loan can be
repaid when the property is sold."
Ennis adds: "Basically Barratt takes the financial hit now, so
that you don't have to. I would encourage anyone interested in
getting onto the property ladder to really consider the merits of a
scheme like Head Start."
With property prices predicted to rise again, now is looking
like a great time to invest in bricks and mortar. Private rents are
forecast to keep rising as more first time buyers look to stay in
rented accommodation. So, schemes like Head Start certainly look
like a great way to escape the rental trap and provide an
affordable route towards homeownership.
CASE STUDY
First in Line
Stacey Weller and Lee Banfield had been looking to get on the
property ladder for some time but like many first timers
affordibility was holding them back. Then they discovered Barratt
Homes' Head Start scheme and are the first purchasers of the Axis
development in Basildon.
Stacey and Lee are delighted with their stylish two bedroom
apartment at the Axis development which is part of the £1 billion
regeneration of Basildon town centre. With just an £8,000 deposit
and the help of Head Start there dreams of owning their own home
have come true.
Head Start is Barratt's shared equity scheme and has helped
thousands of purchasers onto the property ladder. Requiring a
minimal five per cent deposit, Stacey and Lee only needed to find a
mortgage worth up to 80 per cent of the value of their
property. Barratt contributed the remaining amount in the
form of a loan which can be paid back over ten years or when the
property is sold - whichever is sooner.
Stacey, a primary school teacher in nearby Corringham, explained
the difference Head Start made: "We had been looking to
purchase our first home for some time, but our modest deposit meant
our options were really limited. We had considered
part-ownership/part-rent schemes; however we weren't comfortable
with the fact that we wouldn't own our property outright.
Head Start was just what we had been looking for; we now own a
fantastic property that is all ours and we know we will stay here
for at least five years, if not longer."
Along with affordability, location was really important to
Stacey and Lee. Situated in the heart of Basildon, Axis is a
collection of one and two bedroom apartments with an excellent
range of amenities on the doorstep. In addition, the scheme
also benefits from good transport links; Basildon Mainline station
is just a five minute walk from the development and provides a fast
service to London Fenchurch Street in just 31 minutes or
Southend-on-Sea in just 21 minutes. Alternatively, Basildon
Bus station is just two minutes away.
Stacey commented: "Location was really important to
us. We wanted a home that was easy for both of us to get to
and from work. Lee commutes to Southend by public transport,
so the fact the development is just minutes from both train and bus
routes is perfect. We are also so close to the shops, cafes,
bars and restaurants in Basildon - there is lots going on just a
short walk away."
Stacey and Lee's moved into their new home last month. "The
apartment is very stylish and I love the fitted kitchen, which came
with stainless steel integrated appliances including an oven, hob,
extractor hood and fridge/freezer."
Along with the 10 year NHBC guarantee, Stacey and Lee's
apartment is covered by Barratt Homes' additional five year
guarantee on all fixtures and fittings.
Prices at Axis start from £128,995.
8446 626564
www.barratthomes.co.uk
CHATHAM, KENT
Capstone Heights
One, two and three bedroom homes are currently available at
Capstone Heights by Ward Homes from £109,995. With Head Start this
means that a deposit of just £5,500 is required. With fabulous
views across the surronding countryside, Chatham railways station
is just under two miles away providing frequent services to St
Pancras in 42 minutes and to London Bridge and Victoria.
01634 579229
www.wardhomes.co.uk/capstoneheights
Slough
Eclipse
Eclipse by Barratt North London is a new development of studio,
one and two bedroom apartments right in the bustling town centre of
Slough. With prices starting from just £152,500, purchasers can buy
a one bedroom apartment with Head Start with a deposit of just
£7,625. Just yards away from the station you can reach London
Paddington in 20 minutes as well as Reading in 15 minutes and
Windsor in six minutes.
01753 535269
www.barratthomes.co.uk
BASILDON
Axis
Axis is a brand new development by Barratt Eastern Counties,
which offers one and two bedroom apartments in up and coming
Basildon with its big range of shops and entertainment venues.
Prices start at £122,995 and with Head Start you only need a
deposit of £6,150. Rail services whisk commuters to London in 35
minutes and the station is a few minutes from the development.
01245 232 222.
www.barratthomes.co.uk
Basingstoke
Spencer Place
The Spencer Place development is only a ten minute walk from
Basingstoke train station and the amenities this vibrant town has
to offer. Prices are from £162,995 for a two bedroom
apartment and with Head Start require a deposit of just £8,149.
01256 320867
www.dwh.co.uk/spencerplace
WOKING
New Central
New Central is an exciting new urban quarter in Woking and just
twenty minutes by train into central London. Studios, one and two
bedroom apartments have just been launched so interested purchasers
should register now in order to be one of the first to buy with
Head Start at the development, where prices are expected to start
from £135,000 with a deposit of £6,750.
01483 306480
www.barratthomes.co.uk